Historical cost is more accountable because it is based on actual transactions.

Name: Historical cost is more accountable because it is based on actual transactions.
Brand: Quizplus
Rating: 4.8 (34 reviews)

Question

Quizplus · Accepted Answer

Historical cost accounting measures assets and liabilities at their original purchase price, which is based on actual transactions. This makes it a more reliable and accountable method of accounting compared to other measures, such as fair value accounting, which can be more subjective and subject to estimation.

Historical Cost Is More Accountable Because It Is Based on Actual